The correct answer is ‘Impact and Influence’. In point-factor systems, this factor assesses the job’s effect on organizational outcomes, strategic direction, and guidance of others, even without formal supervisory authority. The role’s described strategic influence and mentoring are classic indicators of higher-level impact, distinct from the formal ‘Supervisory Responsibility’ factor which typically requires direct reports.

The correct answer is to explain the purpose of the salary range and suggest alternative rewards. A core principle is that base salary ranges are tied to the job’s value (market pricing and internal equity), not the individual. Individual performance should be rewarded through variable pay (bonuses), in-range progression based on proficiency, or promotion to a higher-graded job. This maintains the integrity of the pay structure.

The correct answer is $89,250. A ‘lead the market by 5%’ philosophy means setting pay levels 5% above the chosen market benchmark. Therefore, 5% above the $85,000 median is $85,000 * 1.05 = $89,250. This becomes the target midpoint around which the salary range is built.

The correct answer is front-line customer service representatives. ‘Line of sight’ refers to an employee’s ability to see how their individual actions influence the metrics (like stock price) that drive the award’s value. Front-line employees in support roles often have the weakest perceived line of sight to overall company stock performance, making such equity awards feel more like a lottery ticket than a performance incentive compared to executives or revenue-impacting roles.

The correct answer is the plan with accelerated rates for initial sales to new customers. This structure specifically incentivizes the desired behavior: acquiring new customers. It rewards reps for penetrating new accounts (market penetration) rather than just maximizing revenue from existing clients or hitting large aggregate quotas. It aligns the incentive directly with the strategic goal of adoption.

The correct answer is the ‘Use of compensable factors.’ The debate shows they are implicitly using different factors (complexity vs. accountability) to assess value. A formal job evaluation system requires pre-defined, consistently applied compensable factors (like Knowledge, Impact, Problem-Solving, etc.) to ensure all jobs are measured against the same criteria, leading to internal equity and reducing subjective debates.

The correct answer is using a merit increase matrix targeting a 3.5% average. This approach directly links the size of an individual’s increase to their performance rating, ensuring differentiation. The budget is a control mechanism (the average of all increases must be 3.5%), but the distribution is skewed toward top performers, which is the essence of pay-for-performance.

The correct answer is to analyze the total rewards package. Compensation professionals must look beyond base salary. Employees may be satisfied because the benefits are superior, the bonus potential is high, the work-life balance is better, or the intangible rewards are significant. A holistic view is required before making costly base salary adjustments, especially in the absence of symptoms like high turnover.

The correct answer is that it can perpetuate existing pay inequities. Basing a new offer primarily on prior salary (the ‘pay history’ approach) can institutionalize discrimination or past negotiation disadvantages. Best practice is to base the offer on the new job’s value (its salary range midpoint, adjusted for experience) to ensure internal equity and avoid carrying forward potentially flawed historical data.

The correct answer is ‘Impact and Influence’. In point-factor systems, this factor assesses the job’s effect on organizational outcomes, strategic direction, and guidance of others, even without formal supervisory authority. The role’s described strategic influence and mentoring are classic indicators of higher-level impact, distinct from the formal ‘Supervisory Responsibility’ factor which typically requires direct reports.0